Tuesday, January 31, 2017

One of the things I recall as an IBO was thinking how sorry I felt for people who were not Amway IBOs because we were all going to be rich and everyone else was a loser. Our upline used to tell us that we were winners - and if you weren't a winner, then obviously, you are a loser. Many times, the term "broke" was attached to the term loser. That was my mindset back then, but having been out of the system more than ten years, I can look back and laugh, realizing that the losers were the ones buying stuff they don't need, stalking people at malls and bookstores, and wasting their time and money on tapes (cds), books and functions. We were losing both time and money, which is ironically what we joined to attain more of.

What goes unnoticed in many cases, is how much time and money really goes down the drain for Amway IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the neverending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper.

But after I did finally cut ties with the business and the people associated with it, I got back into a routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions and I am scheduled to be retired before the age of 56 with a decent retirement income and will likely have my home paid off by then. So while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions, voicemail, cds and recruitment meetings.

So I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface.

Monday, January 30, 2017

It is my observation that people who join Amway usually end up losing money in the end. They may get involved to make a few bucks or because they are mistakenly led to believe that they will become millionaires in Amway in 2-5 years. I know my sponsor convinced me that we would be millionaires in a few years. These folks who recruit new IBOs into Amway are often associated with a "system" such as Worldwide Dreambuilders (WWDB)or Network 21 (N21). These system promoters, often diamonds, may mislead the recruits by showing them pictures of mansions or other luxuries, implying that they attained these goods with their Amway business. In many cases, it is a deception, especially when we know for a fact that some diamond leaders who proclaimed that they only make cash purchases, had their homes foreclosed. Without the hype, I am sure there would be fewer sign ups. But what is the evidence?

It is simple. Amway reports that the average active IBO earns about $202 a month in gross income. This average includes diamonds and other higher end IBOs, but excludes IBOs who were not active. If you calculated the median, the average would be much lower.

But what makes IBOs operate at a loss is the system expenses. The system generally consists of voicemail, standing orders, cds, functions, books and other materials. An average business building IBO might spend an average of $250 a month or so on these expenses. And that's typical of a single person. Amway defenders like to decry the amount, but there are couples who would likely spend more and IBOs who must travel by planes to functions would spend more. Single IBOs who buy only the minimum might spend a bit less. Some IBOs with abusive uplines might spend much much more than $250 a month on tools. I believe my former sponsor probably spent easily an average of $1000 a month on average. (I am from Hawaii so the average cost of functions is greater due to long distance travel)

Thus if the average IBO earns $202 a month but the same average IBO spends $250 a month on tools, the average active IBO is losing money each month, with lower level IBOs (i.e. 100 PV) would lose more.

Look at a group of 100 IBOs at 100 PV. (This is just a model). If a 100 business building IBOs average $250 a month on tools, they as a group would expend $25,000 a month on tools. Their volume would be 10,000 PV, or about 30,000 BV. This would generate about $7500 in bonuses per month. Thus this group spent $25,000 to learn and be motivated while the group splits up $7500 a month in bonuses. The platinum would get the lion's share of the bonus but most of the rest of the group will suffer net losses. As the group grows, the bonus may grow, but so will their expenditures on tools.

The only way the group can make money as a whole is to avoid participation in the tools altogether. The evidence is right here with simple math. The systems do not work because the cost of the system is likely to consume all of the Amway generated bonuses and more. I gladly challenge anyone to explain in detail how this post is not reflective of the reality of being in Amway and a system such as WWDB or Network21.

Friday, January 27, 2017

I've heard over the years, many IBOs who failed in the Amway opportunity who blamed themselves for not putting in enough effort, not trying hard enough or not working the system. Some say they simply didn't work hard enough or put forth enough effort and persistence. While I don't doubt that some IBOs don't work hard enough, I cannot fathom that so many motivated and eager prospects simply failed because they didn't work hard or try hard enough. I believe IBOs are taught to accept failure as their own and to credit any success to the system. A case of heads I win and tails you lose.

Uplines will tell new IBOs to trust them and that these new IBOs will succeed if only they will follow the advice of the allegedly successful diamond because they have already blazed the trail for you. Ironically, after many IBOs fail, upline will never take responsibility for the advice they issued that led to downline failures. They then turn the tables on their donwline and say that their advice is like a buffet. You pick and choose the advice you need and disregard the rest. That is such a bunch of crap that I cannot fathom downline IBOs buying what they are shoveling. A new IBO places their trust in the diamonds because they have achieved the pinnacle of success but a new IBO is supposed to pick and chooe which advice to follow? And then failure is the fault of the downline?

Ironically and sadly, thse downline, when they ultimately fail, often end up blaming themselves and just disappear unless someone recruits them again. They are often sponsored by friends and family so you won't see them filing complaints against Amway or the uplines who led them astray. Uplines nearly assured their success if only these new IBOs would buy the training materials and attend all of the functions. But many IBOs work hard and do everything outlined by upline only to fail. It is likely because the system doesn't work. Many financial systems are for sale out there and most of them have very little success. Amway is no different, except that uplines promote their systems as sure fire.

It is however, my belief that many or possibly most IBOs are the victims of fraud in that they are given possibly false positive information about the Amway opportunity. They get involved and find out that the system doesn't work, and then they end up quitting with a loss and them blaming themselves. Brilliant for the uplines who profit but in my opinion, it makes IBOs the victims of fraud by upline. Upline profits whether or not their downline makes a cent. Some upline strongly encourage downline to buy more and more tools, even when they know that those downline have no chance of making money in the Amway opportunity. It makes the IBOs victims and it makes the uplines a bunch of crooks.

Thursday, January 26, 2017

So many IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.

I also see and hear many IBOs popping off about how someone in their upline earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.

Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream nite" where they show off lavish displays of wealth. Well, it is my informed opinion that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.

While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.

Wednesday, January 25, 2017

Some blog visitors have in the past, and recently, advised me to go and visit with a diamond or a platinum. That spending time with someone in the business would give me a different perspective. I'm not sure what my visitors thought I would accomplish by doing this. As an IBO, I spent countless hours with my upline platinum and on many occasions, my upline diamond. My honest opnion is that they were just average everyday people who made their living in a different manner than most. Their homes weren't fancier, they didn't drive special cars, they didn't have the kind of material wealth that's often portrayed in functions and meetings. and that's fine.

What I would challenge prospects and IBOs to do is just that. Ask to spend time with your upline platinum and/or diamond. You are likely to find ordinary people with ordinary lives outside of the business. So many people think that the upline platinums and higher live in the lap of luxury and it's not true, unless they are living beyond their means. I do believe that many upline leaders do live beyond their means. It is because showing off material wealth is a vital part in attracting and retaining IBOs. You show them material wealth and get people to dream about achieving the same thing in order to sign them up for Amway and the associated tools and training business. Sadly, the vast majority who register and attempt to build an empire will end up quitting, and most of them, especially the ones who attended the functions will end up with a net loss, even if they put in extraordinary amounts of time and effort. Sure, some people may eventually achieve higher levels in the business but they are the exception and not the rule.

In normal and in real business, one way to prove your results is to open your books and show your financial details. Your upline of course, will tell you that it is none of your business, but if you are being asked to invest your time and money into a business opportunity, you have every right to demand this information. If your prospective sponsor refuses to supply this information, it should be a red flag that they have something to hies. It seems that many IBOs emebllish their income claims or try to change the discussion. They may even produce a photo copy of an upline's bonus check, but that proves nothing. What prospects and IBOs should demand is a profit and loss statement. It would give an idea of what expenses someone can expect as an IBO and what kind of income can be expected at various levels.

Joecool has no reason to visit a diamond. But I would certainly say that IBOs and prospects should do so. You might be surprised to find that a diamond is not "all that" when you see them up close and personal.

Tuesday, January 24, 2017

Recently, there's been debate between critics and Amway supporters over an issue regarding a WWDB function called 'Dream Night". A WWDB IBO reported that the function was sold out but did not disclose the amount of a Dream Night ticket. He later posted an article saying that he was sorry for being "negative". Now as a former IBO from WWDB, I was taught to be only positive, That we have too much negative in our lives and that we need the positive.

Now I agree that having only "negatives" in our lives would be detrimental. That eventually, we would be worn down by only negative. But conversely, the teaching of having only positive in your life can be equally damaging. I recall an old Twilight Zone episode (Title: A Nice Place to Visit) where a guy allegedly dies and he thinks he went to heaven as a man in white came to him and offered to grant him what he wanted. He asked for girls and to be a winner in gambling. Well, the man could never lose a single bet. He won every single time and he had girls all over him. He found it to be no challenge and found life so mundane and predictable that he asked the man in white if he could lose once in a while or be challenged. The man in white basically said "no" and the man (I believe his name was Rocky) Rocky, said how come heaven was so lame (not verbatim). The man in white proceeded to tell him "what makes you think you're in heaven" and laughed incessantly while the Twilight Zone music ended the show.

Now being positive and having a good attitude is a good idea and probably good for your business, but having only positive and shutting out all negatives is a ridiculous thing and it seems as if WWDB leaders are still teaching it. What happens if your business gets audited? You tell the IRS man you can't speak to him if it's not "positive news"? What if you go to the doctor? You tell him don't let you know what's going on unless it's positive news? If there's a natural disaster in your town, you turn off the news because it's not "positive"? What if your body could not feel pain? Would that be positive for you? It might but the reality is that not feeling pain or having zero stress is likely to be detrimental to your health.

In my informed and experienced opinion, I believe that some Amway and WWDB leaders teach you to shut out negative in your life is because lots and lots and lots of people have negative experiences and things to say about Amway and WWDB. If you doubt me, ask about Greg Duncan, Dave Shores, Brad Wolgamott, Dean Kosage and some others. Ask your sponsor or your upline what happened to these folks. If they tell you nothing or that it's negative, I challenge you to google search and find out for yourself. If your upline still denies or says you should shut out negative, maybe you should find out what they are hiding by shutting out all negative in their lives.

Having only positive in your life is probably "weird". Is that what you want to be?

Monday, January 23, 2017

Over the years I have been debating with Amway supporters, I cannot see what is so great about the Amway opportunity. Are some of these Amway defenders that stupid or dense that they truly believe that a business where one out of a few hundred people might make a profit and most of the remaining IBOs will lose money is a good opportunity? I'm not talking about people who sign up and "do nothing". Many IBOs sign up and put in a great deal of time, effort and money, only to find out that the system simply does not work (especially in the US) and they make a business decision to quit and/or to do something else.

Of course there are some people who make money in Amway. If nobody made money, then the opportunity would cease to exist. But it is basically exploitation of the downline that accounts for upline success. Amway's admission that sales to non IBOs are low, confirms this. Thus certain upline make their income from their downline's PV volume, and on tool purchases. I mean even a lottery has winners. Even ponzi schemes and other questionable opportunties have some winners. This is not to suggest that Amway in not legal. Amway is perfectly legal, but the way the opportunity is set up, those who profit, primarily do so at the expense of their trusted downline.

There are no groups that I know of where all the IBOs can win and earn a profit. I would guess that there might be a few rogue groups who only focus on retail sales, and while these groups can be profitable as a group, they are few and far between. This is because most IBOs fall under an LOS such as WWDB, BWW, LTD or N21, and these groups all seemingly focus on recruiting of new IBOs. Yes, they may sprinkle in some suggeestions about selling goods, but generally speaking, their "training" materials consist of motivation speeches, feel good stories (whether true or not), and the theme of never quitting while continuing to purchase more tools.

Some upline have the nerve to start teaching downline that their Amway business is not about making money, but to save your marriage, make you a nicer person, or some other diversion to make you forget that you are losing money month after month after month. Some groups even mix in religion and politics into their functions and meetings. As far as I can see, the typical business buildiing IBO signs up, gets some of the tools and attends a few functions, and finds that the products are hard to sell because they are not priced competetively with other retailers, and that a damaged reputation is nearly impossible to overcome. These IBOs realize they are not going anywhere, and they walk away, chalking up the losses as a life lesson. But apparently, many uplines who lied and deceived in the past are continuing to do so today, often just revising history for their benefit (i.e. lying about making any profit on tools).

Many IBOs, prospects, information seekers and critics read this blog. My question is very simple. What is so great about the Amway opportunity? For most, it is just a bad use of time and money. While some may exist, I don't know of a single person who "did the work once" and sat back collecting barrels of Amway money while sipping Mai Tais on the beaches of Jamaica. I see crown ambassadors working as hard today as they did many years ago. Diamonds losing homes to forclosures, a prominent diamond in bankruptcy proceedings, and a hoard of WWDB diamonds apparently selling off mansions that they allegedly paid for in cash. (It os quite possible that their lifestyles are simply not sustainable).

Where is the benefit in the business for the typical IBO? Just as there are some diamonds, there are lottery winners. Displaying a lottery winner doesn't make it prudent to spend your money on lottery tickets. Displaying a diamond's lifestyle doesn't make Amway a good opportunity. While Amway is a business and not a game of chance, the results of either, sadly are eerily similar - that is a few winners and millions of non winners.

Friday, January 20, 2017

IBO = Independent business owner. I thought it was cool, but looking back at the bottom line, IBOs are just salesmen for Amway with no fringe benefits and no guranteed salary. Or, a comission only salesman. Salesmen earn their income by selling goods and services, and earn a commission. Sadly, many IBOs sell very few items because they have been taught that you make your money by purchasing items from yourself.

On the surface, buying from yourself sounds sensible but you don't truly make a profit by purchasing your own goods, you simply empty your checking account. Any profit you think you have earned has actually come out of your own pockets. In any business, you must have a base of customers in order to have a steady income. If you are purchasing the majority of your goods, you are only making a profit for Amway the corporation, who makes, or in the case of partner stores, distributes the goods. The ones who actually produce the goods are the ones who profit. An IBO is just someone who sells the goods and who distributes them for a commission.

For most "real" business owners, building their business might mean advertising, creating special sales, and increasing the number of customers or by increasing the volume purchased by existing customers. An IBO who is "building the business" is rarely ever trying to attain more customers. In fact, some of Amway's regulations make it difficult to attain a mass of customers such as restictions on advertising. Therefore, most IBOs who are "building" are simply seeking to add downline who will hopefully buy their PV and also attain more downline. In this manner, IBOs are increasing volume, and therefore their commissions by adding people to their downline. Ultimately, the upline is making their money by the efforts of their downline and often, from the jobs of their downline because there are usually not enough customers to sustain any significant level of sales.

In this day of social networking and power advertising, Amway apparently remains a dinosaur. While they do advertise some of their product line on TV, the salesmen or IBOs have little ability to market their products on a large scale. Instead it is word of mouth, individual to individual. It can be highly effective but you just can't create serious volume in that manner. Do you know why it costs hundreds of thousands of dollars or millions for a 30 second commercial in the superbowl? It's because tens or hundreds of millions of people are watching. What do you think is more effective for increasing sales? A superbowl commercial or word of mouth advertising? Keep in mind that zany IBO behavior has already damaged the Amway name, thus giving you a disadvantage over other opportunities.

In the end, or the bottom line is that an IBO is just a salesman who receives no fringe benefits, and a relatively small commission. It's a great deal for Amway, but is it a great deal for an IBO?

Thursday, January 19, 2017

In the past, and I believe still today, some leaders in motivational groups talk about faith and belief. Speak it into existence. Some of this is the mantra amongst IBOs who believe they are going diamond. Never mind that statistically, your chance of winning the lottery might be better than going diamond in Amway. In fact, I believe there have been more powerball lottery winners than new Amway diamonds in the US and Canada in recent years. But an honest question for IBOs, prospects, and Amway supporters. Do you truly believe that this business works and that you will succeed?

If you truly believe, would you feel confident walking into a bank and meeting a loan officer. Tell the loan officer that all you do is sponsor 6 who sponsor 4 who sponsor 2 and you will be a new platinum (silver). Then all you need is 6 of these groups and the money will roll in forever while you sit on a beach in the Bahamas while money rolls in by the barrelfull. And then ask the loan offier for a business loan. If you think this suggestion is crazy, maybe you don't truly believe in the business. Surely a loan officer would have some financial acumen and would be able to determine the viability of the business prior to approving a loan.

Would you feel comfortable talking to your doctor about joining Amway because a diamond makes much more income with less effort? How about a business professor at your local university? Surely someone with an established expertise in business would see the value of an Amway business and join your efforts? Or would the professor laugh you out of his office? Do you truly believe in what you do? If so, do you use the curiosity approach or are you straight up with prospects and invite them to an Amway meeting? If it's the latter and not the former, maybe your belief isn't that strong?

How hard do you work at building your business? If you truly believe that going diamond is the answer to all of life's challenges and problems, why aren't you building it and working on it as if your very life depended on it? Maybe your belief isn't what you think it is? Are you adding people to your downline every week or month? If not, maybe your belief isn't what you think it is?

If you have some doubts about what you are doing, then it is probably because you see IBOs coming and going. Maybe you see monthly losses in your business. Maybe you see people quitting the business regularly. Maybe you see the same old leaders on stage giving the same rah rah speeches. Maybe you see the logic and the common sense in most of the articles posted on this blog. My blog isn't here to make anyone quit Amway. My blog is to provide information to information seekers and to assist people in making informed decisions if they seek information prior to joining Amway and a motivational group such as WWDB or BWW.

Do you truly believe in what you're doing? Joecool truly believes in what he blogs about.

Wednesday, January 18, 2017

I've seen some interesting discussion recently about how a diamond pin is like winning a gold medal. That you don't get it taken away from you later even if you don't qualify anymore. The discussion also flowed as to where they mentioned that former US President Jimmy Carter is still addressed as Mr. President. Or that someone with a superbowl ring can be addressed as a superbowl champion. While I agree with that to some degree, I think the issue of diamond or former diamond is significant and different from former President Carter or a former Superbowl Champion. Terry Bradshaw or Joe Montana don't parade around as if they just won the superbowl last year.

The diamond pin is a significant achievement for sure. Seems that recently, it's even harder to achieve in North America. I don't know of more than a few new diamonds emerging in the last ten years or so in the US. But if say a diamond qualified in 1988 and never qualified again, how would you as an IBO feel about paying to see this diamond speak function after function and how many would continue to buy standing orders from a guy who may have achieved diamond 20 years ago and never again? Would the audiences be "fired up" to see these speakers? I find this ironic also, because many Amway defenders like to criticize Amway critics for having an outdated experience. Well, conversely, a one time diamond would be basically the same thing. If not then Joecool should command the respect of a 4000 PV Eagle since that was my highest level.

I actually have no issue with Amway allowing the achiever to carry their highest pin as a recognized achievement, but I do believe that those who use their former pin status to exploit and profit from new IBOs and prospects should be stopped. I know I would not have been so excited attending a function where the keynote speaker went diamond for 6 months a decade ago and was no longer qualified. Else, by upline's definition, he will teach me to go diamond and fall apart? I believe there are fewer North American diamonds now than ten years ago. Some diamonds resigned and some outright quit. So much for residual/passive income. Obviously if these things existed, then nobody would quit or walk away from residual income.

BTW, a recent article on an Amway Corporate website says this about passive income:
"Passive income is a term we do not permit distributors to use and it’s not a term the Corporation uses. In our business, there is no such thing as doing no work, and expecting money to still come in.” Link:
http://blogs.amway.com/answers/2010/11/02/unwelcome-words/#comments

Tuesday, January 17, 2017

One of the things that was heavily promoted when I was an Amway IBO, and I believe is still promoted, is the control of time and money. I recall hearing that "broke" people often have lots of time, but can't do much because of a lack of money, or how a very hard working man and successful might have money but a lack of time as he is working 80 hours per week. So why not join Amway, work hard for 2-5 years and have all the time and money you need for life? Sounds great on the surface right?

Well, it sounds good on the surface, but how many people actually do that? I don't know of any IBO who worked the business 2-5 years and walked away from their Amway business to enjoy control of time and money forever. And there are reasons for that. Attrition. Most IBOs who join don't do much and about half or more of all IBOs won't even be in business for more than a year. IBOs also need to be active and moving side volume in order to qualify for some of the bonuses. It is why I believe that there aren't any diamonds who left to enjoy their time and money because of passive ongoing Amway income. Diamonds and above must continually work the business or their businesses will fall apart like the waves would erode a sand castle at the beach.

For many IBOs ironically, what they desire most, time and money, is what they have less of because of their involvement in the Amway oppoprtunity. It is because of the way many IBOs are taught by the systems such as WWDB, BWW or N21. Many of these groups will teach a defacto PV requirement of 100 PV (or more) which costs about $300 monthly. In some cases, you are getting a small box of goods for the same amount of cash that would have gotten you a cartload of goods at WalMart or Costco. For system IBOs, you are also paying for instruction that basically tells you that this is a great idea and that you should never quit. It seems that those who do so, succeed in spite of, and not because of the system and upline advice.

So now when your family and friends have backyard barbeques or birthday parties, you are absent because you are securing your financial future. Your kids surely won't mind you missing their baseball games or sending them to the sitters while you attend a function. Your family and friends will be wowed when you retire next year and throw them a party to end all parties. It all seems surreal, and for most, it truly is. There may be $10 or even $50 monthly checks rolling in from Amway but is never covers the cost of your expenses. You can't quit because success might be right around the corner. This is the trap of Amway.

Suddenly your sponsor or upline might tell you that the Amway business is not about money. You might be told that you are a nicer person or a better parent (even if you neglect your kids to attend functions), or that the business opportunity has saved your marriage. Which leads to my question. What have you achieved in the Amway business that has given you more control of time and money? Do you have less time and money as a result of your involvement with Amway? I don't know of anyone who actually signed up for Amway with an end goal of being nicer (if that's even true) or signing up to make friends.

During my involvement with Amway, my life was changed, but not for the better. And it wasn't because of Amway. It was self serving teaching by WWDB leaders designed to suck the life out of IBOs. We were to attend all meetings. All means all. We were to submit to upline. Check your ego at the door. We were to buy extra tapes/cds because you can;'t listen to the same ones each day. Wives and husbands needed seperate standing orders. If downline quit, you don't cancel standing order. It is why I saw crosslines go bankrupt, lose a home to foreclosure and many ended up quitting and with large financial loss.

In reality, Amway works to a "T". Amway and the systems were designed to reward a few high ranking IBOs who reap rewards at the expense of downline in the form of volume bonuses and by downline purchasing training materials (books, cds and seminar tickets). The lie is that anyone an everyone can do with. The math bears it out, regardless of whether you can make more than your sponsor. If most people do little or nothing, then of course anyone can make more than their sponsor. But you won't make more than your upline diamond. You can bank on that.

Friday, January 13, 2017

Let me make a disclaimer right off the top so Amway defenders don't try to discredit the post without reading it. The Amway opportunity is not a game of chance. But I will go on to explain how and why the opportunity can be compared to gambling and why the diamonds can be seen as a casino or the "house". In either case, the fact that Amway is not gambling, but yields lower success rates than gambling speak volumes.

In the Amway opportunity, the odds against someone going diamond are astronomical. Literally millions of people have attempted to build an Amway business in North America over the years and diamond club for North Anerican diamonds a number of years back had 160 diamond-ships represented. Certainly some north american diamonds may have turned down a free trip to Hawaii but I'm guessing that's not a big number.

The odds are also stacked in favor of the diamonds. Casinos are not built by winners, but by the hoards of losers. Just as a diamond business is not built by having a foundation of winners, but layers and layers of IBOs who are losing. The Amway opportunity is simply set up that way. Look at your common 6-4-2 plan or whatever version your group uses. The newest or biggest layer of IBOs make very little and when you factor in expenses such as functions or standing orders, the losses can be staggering.

A diamond, like a casino will attract many young dreamers who think they can conquer the world and will get rich. They use bright lights and profile former winners just as Diamonds show off fancy cars and testimonies to lure in recruits. The newness of the opportunity gets you excited, just as someone walking into a casino might feel the excitement with the sounds of the casino. All you need is some effort and little luck right? Sadly, that excitement is all too often replaced with the harsh reality that most must lose in order for there to be a few winners, both in casinos and the Amway business.

Like casinos and diamond uplines, there is much caring for active IBOs and for players who are spending their money in casinos. But once you walk out of the casino, there is no special treatment, just as an IBO who stops building a business or stops being core quickly becomes forgotten. In Amway, people who said they were lifelong friends were never heard from again once an IBO missed a few meetings. If you re-emerge, you will find the love again, just as you will get free drinks when you start gambling again.

And yes, there are some exceptional people who can scratch out a nice living by gambling but they are few and far between, just as there are diamonds, but diamonds also have thousands of people who wanted diamond but could not achieve it. Those who can finally make it usually have an exceptional blend of skill and a bit of luck. Some even cheat/lie in order to gain a bigger edge, both in gambling and in Amway.

Like a gambling "system", the Amway opportunity has "systems". In either opportunity, the system doesn't work for the masses. There are an exceptional few who can make it work. Except in gambling, most people understand that the odds are stacked against them. In Amway, many new IBOs are told that anyone and everyone can succeed when it simply is not true.

Can you fulfill your dreams by gambling or with the Amway opportunity? The answer is yes, but the reailty is that few will ever do so. Like casinos and Amway diamond-ships, both are built on the backs of those who lose, not on those who win.

Thursday, January 12, 2017

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of the system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for uplines than the actual movement of Amway product volume. And that's because Amway tools have a higher profit margin for upline because Amway doesn't share in the tool profits. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might cost them more than $300 a month. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more per month. Uplines will then justify the expense by saying the IBO is investing in his/her business or that these tools are vital for their success.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to $500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stays? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

Wednesday, January 11, 2017

One of the things my upline taught us ad nauseum was that we needed to have faith in our business and in our upline. That we needed to believe that we were going to be successful. IBOs are told that they should act successful even if they are still working their way up the ranks in the business. It is why they ask (require) IBOs to wear suits and business attire to all meetings and functions. This is one of the weird quirks about the business in my opinion. I live in Hawaii and I remember a function they held in the middle of July in a high school auditorium and there was no air conditioning. I think my suit needed special cleaning because it was completely saturated with persiration.

Anyway, with this part of the year, soon there will be thousands of IBOs shuffling off to a function called dream night, or in some cases, winter conference. The tickets are about $60 to $80 and includes a dinner. What IBOs are often unaware of is that many venues will allow you to run these conferences for $20 to $25 per person. The rest of that ticket prices goes directly into your upline's pockets. Anyway, the dream night function will feature slide shows of mansions, yachts, jet skis, sports cars, fabulous vacations and other trappings of wealth.

What many IBOs don't realize is that this display of wealth is just that. There is no bonafide evidence to indicate that these diamonds actually own all of those toys and goodies. The diamonds probably won't verbally confirm it either, because these toys and goodies may not really be owned by them. It could be rented, or maybe some upline corwn ambassador may own the mansion, but IBOs will assume that these trappings of wealth are common once you reach diamond. As an IBO, I never actually knew how much a diamond really earned. I just assumed it was a lot because we were shown all of these goodies and just assumed all diamonds had these kinds of lifestyles.

If I posted a picture of a mansion and a jet and said I owe it all to my earnings as a blogger, people would cry foul, that I am lying or making things up. And they would be right. Well, I would guess that many diamonds are doing the very same thing if they appear on stage and implying that they have jets and mansions. As I said, someone may own a mansion and a jet, but to imply that this is a part of the typical diamond lifestyle is a stretch. The evidence is there. Some diamonds have lost their homes to foreclosure. My old LOS diamonds (WWDB) taught us that diamonds pay cash for everything, including homes. Now confirmed as a blatant lie. Who knows what else they may have misrepresented?

I ask IBOs and prospects who may be attending dream night, to watch with a critical eye. What is being implied with the display of wealth? Analyze if those goodies can be purchased with a diamond income ($150,000 plus some tool income). Ask yourself if this lifestyle is truly sustainable? Ask yourself if you can live with yourself if deception is a part of earning your diamond lifestyle?

Tuesday, January 10, 2017

I recently read an article on what constitutes wealth. Some say an annual income of $100,000 would make them wealthy, some say assets exceeding $4 million would do it, and some estimated that $2 million would make them "rich". Of course, everything is relative and someone earning $25,000 a year would think that $100,000 a year is wealth, etc. College students might think $40,000 a year is awesome because many have little money to begin with. I'm sure someone like Bill Gates would not consider $4 million to be astonishing. It's all relative. If you are content with what you have, you are likely relatively well off already.

But let's talk about Amway diamonds. I say diamond because it is basically the pinnacle of success. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond earns about $150,000, according to Amway. Now $150,000 sounds like a lot of money to young people or to those with lower wage types of jobs, or those who are just starting out in their careers. But we also know that diamonds earn income from the sale of tools. Some groups advertise (verbally) that someone might earn $100,000 a year from the tools/speaking income.

Let's be generous and say the diamond earns $300,000 a year from Amway and tools income. Income tax and medical insurance for the family will eat up about 40% of that right off the top, leaving about $180,000. Fantastic you might say? Well, a diamond certainly would live in a million dollar mansion, which would give you about a $6000 a month mortgage or $72,000 a year, leaving $108,000. (Although many - a - diamond pays for their homes in cash) Fantastic right? Well, diamonds are constantly traveling to various functions, flying first class and staying only at 5 star hotels right? So an average of 1 trip per month with a family, first class and a 5 star hotel would probably cost about $5000 or more per trip, or about $60,000 a year, now leaving $68,000 for this diamond's yearly budget. A good diamond with a family surely consumes 300 PV per month for household goods, or about $900 a month or about $11,000 a year, leaving $57,000 for the rest of the year. A good diamond is often a Christian who would faithfully tithe 10% of his income, or about $30,000 a year, leaving the diamond with $27,000 a year, or about $2250 a month to pay for their monthly electric and utility bills, gas, car payments, meals and entertainment.

Yes, some expenses may be slightly higher or lower, but what I am trying to illustrate is that even an above average diamond with tools income is more likely to be broke than wealthy if they live the lifestyles porttrayed at functions such as dream night or other major functions. Do the math. It is unlikely that diamonds pay cash for everything and it is unlikely that fabulous lifestyles can be sustained on a diamond income. There is plenty of evidence out there. Diamond's homes foreclosed, diamonds behind on income taxes, a prominent triple diamond in bankruptcy proceeding, many diamonds selling off their homes in a bad real estate market.

I truly believe that it is quite possible for many diamonds to be broke or deeply in debt. My numbers certainly won't apply to all diamonds but it certainly paints a picture that diamonds don't want you to see.

Sunday, January 8, 2017

Hi everyone, JoeCool is back from vacation. I took a fabulous 2 week vacation in international locations and had the time of my life. Looking forward to another similar vacation nex year as well. And guess what? I paid for this trip with my J-O-B income and had sufficient time off to take the trip and recover from a little jet lag after. I'll be back a work in a few days but I've been off this blog for a while so I decided to update it.

It seems that no matter how much time passes, or what year it is, Amway hadly changes. What I mean is people (prospects) continue to be deceived by Amway IBOs about the Amway opportunity and about the income potential. Basically, Amway is ageless. If I had gone to sleep in 1996 (ala Rip Can Winkle) and woke up today, I would find that Amway and the Amway business is basically the same. Yeah, you can order online now but the basic premis of the business has not changed. What I mean is that the focus of the IBOs is still on recruiting and trying to get people to see the plan.

I still do not see much emphasis on actually selling Amway products by most IBOs. You know who does the most selling? The upline diamonds who sell IBOs voicemail, cds, seminar tickets, open meeting tickets and other tools that the diamonds profit handsomely from. I still can see that diamonds keep their tool profits on the down low as they don't want the sheep to get wise to the scam. hey think that the diamonds actually make their money from Amway but the truth is that a very significant income is made by diaonds elling tools. Think about it, the mark up on tools is much greater than the markup on Amway products and the tools income in only shared by the higher up Amway distributors, not with the rank and file.

People still quit Amway in hoards and most people quit presumably because the business wasn't "all that" and possibly because the IBOs were losing money because of tools and business expenses. Amway actually works as designed. It extracts money from downline in the form of product and tool purchases and funnels it up the organization (or pyramind) to the higher ups such as the diamonds and above). Whether you agree or not, that's what Amway is designed to do and that's exactly what happens. Even though I quit Amway around 20 years ago, not much appears to have changed. Amway is timeless.

About Me

I am writing this blog based on my experiences in the Amway/Quixtar business and the opinions I have formed based on those experiences.
I ran a 4000 PV business (with eagle parameters) only to discover that I was not profitable!
I'm not here to encourage any IBOs to quit, nor do I wish anyone to fail. I do encourage IBOs to ask their upline tough questions and I encourage IBOs to closely monitor their profit and losses as does a traditional business owner.

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